Asian equities declined in a sign of caution ahead of US jobs data that will help shape the outlook for interest rates.
MSCI’s Asia benchmark dropped for a third session as shares in most markets dropped. Contracts for the S&P 500 were little changed after the US stock market was closed Thursday to observe a national day of mourning for former President Jimmy Carter.
Treasuries were steady in Asian trading, following a rout earlier this week that drove 30-year yields to the highest since 2023.
Chinese yields rose as the People’s Bank of China said it will temporarily halting its buying of government bonds, a surprise move that came after the benchmark yield slumped to a record low. The offshore yuan edged higher against the dollar.
“This should stem the decline in Chinese bond yields, and indirectly help support the yuan by narrowing the yield gap with the US slightly,” said Khoon Goh, head of Asia research for Australia & New Zealand Banking Group. However, should US yields rise further, “pressure on the yuan will remain,” Goh said.
